This week, XRP inflows experienced a notable drop, by 83.4%, to $31.3 million. This was due to the U.S. Federal Reserve's hawkish economic signals. This was a steep fall from the $190 million the week before amid broader market turbulence, where more than $1 billion in digital asset outflows occurred on Friday alone.
Despite the sharp decline, XRP remained the second-highest altcoin in terms of capital inflows, trailing only Ethereum. This performance occurred as Bitcoin recorded $404 million in outflows, its worst weekly result since April. Ethereum, on the other hand, achieved its 15th consecutive week of inflows with $133.9 million.
The drop in XRP inflows occurred as the majority of the crypto market reacted to positive U.S. economic data. Investors drove capital away from riskier assets because they were uncertain if there would be future interest rate cuts. Despite the sell-off, XRP's ability to maintain substantial inflows showed active institutional interest in the asset.
Institutional demand for XRP exposure has risen through products like the Teucrium 2x Long Daily XRP ETF. Sal Gilbertie, president of Teucrium Trading, confirmed that the ETF has become the firm’s most successful fund in its 16-year history. Launched 16 weeks ago, the ETF now ranks above all prior funds in performance and investor traction.
Gilbertie stated the company had already explored the crypto space through Bitcoin filings. Nevertheless, XRP stood out due to how the market operates and how appealing it is to investors. The ETF, which gives investors leveraged exposure to XRP through derivatives, quickly became popular on the NYSE Arca exchange with both retail and institutional investors.
The fund’s explosive growth reflects a broader trend of investors seeking regulated exposure to digital assets. Gilbertie noted that the pace of capital inflow into the fund was “extraordinary,” with hundreds of millions already invested. The success of Teucrium’s XRP product underscores growing confidence in XRP’s long-term prospects.
Also Read: XRP Loses $2.4B in Open Interest: Is a Price Crash Coming?
XRP remained near the top, but other altcoins were not performing either. Solana had $8.8 million in inflows, while Aave and SEI also had good but lower numbers. On the other hand, smaller assets like Sui and Litecoin saw small outflows, which could mean that investors should be cautious in less capitalized tokens.
As macroeconomic pressure grew, Bitcoin led the market down, shedding $404 million. On the other hand, Ethereum continued to advance, attracting money even though the market was uncertain. Analysts said that this distinction was because investors saw Ethereum as less volatile and because of the ongoing developments in its ecosystem.
The market reacted after a month in which digital asset funds received more than $12 billion in new inflows. This week's shift reflected a short-term correction rather than a structural reversal. XRP's continued inflows, although they were lower, put it in a good position among altcoins. Moreover, this indicates that it is still valuable as capital allocations shift in response to the policy signals.